CIMdata PLM Industry Summary Online Archive

28 July 2004

Financial News

Magma Reports Record Revenue for First Quarter; Increases 58 Percent over Year-Ago Period

Magma Design Automation Inc. announced financial results that include record revenue of $36.0 million for the quarter ended June 30, 2004, the first quarter of its 2005 fiscal year.

For the first quarter of fiscal 2005, Magma reported revenue of $36.0 million, compared to $22.8 million for the first quarter of fiscal 2004, an increase of 58 percent. Magma reported pro forma net income for the first quarter of fiscal 2005 of $7.7 million, or $0.18 per share (diluted), both of which are records for the company. This compares to a pro forma net income of $4.9 million, or $0.14 per share (diluted), for the first quarter of fiscal 2004. In accordance with generally accepted accounting principles (GAAP), Magma reported a net loss of $(2.5) million, or $(0.08) per share (diluted), for the first quarter of fiscal 2005, compared to net income of $0.1 million, or $0.00 per share (diluted), for the first quarter of fiscal 2004.

Pro forma net income for the first quarter of fiscal 2005 is GAAP net loss adjusted by excluding the effects of a $4.0 million in-process research and development charge related to Magma's first-quarter acquisition of Mojave Inc., amortization of intangible assets, amortization of deferred compensation, restructuring charges, and charges associated with losses on equity investments. A tabular reconciliation of the pro forma to GAAP results is included in this press release.

"The quarter just concluded continued Magma's growth trends," said Rajeev Madhavan, Magma chairman and CEO. "It was the seventh consecutive quarter of increasing revenue as we had solid financial performance. We continue to work with designers addressing critical challenges in today's most aggressive chip designs."

Business Outlook

For Magma's fiscal 2005 second quarter, which will end September 30, 2004, the company expects total revenue in the range of $35 million to $39 million. Pro forma EPS is expected to be in the range of $0.18 to $0.22. GAAP EPS is expected to be in the range of $0.03 to $0.07. A Financial Disclosure Supplement containing detailed financial information intended to provide guidance and further insight into our business is available online at http://investor.magma-da.com/supplement.cfm in the Investor Relations section of the Magma website.

Conference Call

Magma will discuss the financial results for the recently completed quarter and fiscal year, including guidance going forward, during a live webcast and earnings call today at 2 p.m. PDT (5 p.m. EDT). Following completion of the call, a webcast replay of the call will be available at http://investor.magma-da.com/home.cfm through August 4, 2004. Those without Internet access may listen to a replay of the call by telephone through August 4 by calling:  

U.S. & Canada: (800) 642-1687, conference ID #8362625

Elsewhere: (706) 645-9291, conference ID #8362625

This press release contains forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. Further discussion of these and other potential risk factors may be found in Magma's public filings with the Securities and Exchange Commission ( http://www.sec.gov/ ). Magma undertakes no additional obligation to update these forward-looking statements.

 

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